The Argus Group has signed a deal to take on around 500 health insurance clients of the British American Insurance Company (BAICO).

Efforts are also underway to find a solution for the approximately 4,000 life insurance policyholders of British American, whose Bermuda branch has gone into liquidation.

Under the terms of the Argus deal, health policyholders will have the opportunity to keep their policies with the same benefits, terms and conditions as they had with British American.

The news was announced at a press conference yesterday at Argus' headquarters on Wesley Street.

Argus chief executive officer Gerald Simons said there would be "no gap in coverage" for those who took advantage of the offer. But only BAICO clients whose premiums were fully paid up to September are eligible.

To maintain their coverage, BAICO health policyholders should report to the ground floor of the British American Building at 133 Front Street, between 8.30 a.m. and 4 p.m., from today until Wednesday, September 30. They should bring proof of coverage, such as their medical identification card or insurance documents.

"Argus is pleased to support British American's health policyholders during this difficult and uncertain time by extending the benefits of our underwriting and customer service expertise to them," Mr. Simons said.

On August 3, financial regulator the Bermuda Monetary Authority announced it had started winding up proceedings against BAICO in the Bermuda Supreme Court.

Since then the company's financial affairs have been in the hands of the Official Receiver aided by professionals from KPMG Advisory Ltd. and Conyers Dill & Pearman.

Government set up a "liquidity facility" to ensure that BAICO health insurance clients would continue to have their claims paid up in the time before the switch to Argus was complete.

At yesterday's press conference, Alan Richardson, chairman of the board of financial regulator the Bermuda Monetary Authority, said: "We are very grateful to the Argus Group for demonstrating this extended level of community support by offering to take on the health policyholders of British American's Bermuda branch."

Mr. Richardson added the Ministry of Finance's liquidity facility had "undoubtedly limited the hardship to policyholders during this difficult time".

Official Receiver Stephen Lowe, who is the Registrar of Companies, said attention would now to be turned to finding solutions for BAICO's non-health policyholders.

"We will work with other providers of similar services in Bermuda and the BMA in an effort to find a solution which, where possible, maximises the value of these policies," Mr. Lowe said.

"I realise there are a very large number of Bermuda residents affected by the British American liquidation proceedings in Bermuda. We are grateful to have found such a quick and satisfactory solution for the continued coverage of the health policyholders.

"Please be assured that I and those assisting me are diligently working towards finding a solution for the non-health insurance policies underwritten by British American."

While health insurance clients were assured they would still be covered according to their policies, life insurance clients are concerned about the money they have invested and the continuing validity of their policies.

Mr. Lowe revealed there were around 4,000 BAICO life insurance clients. Asked if there was a timeline for finding a solution to their problems he said that he did "not have a crystal ball", but the challenge was complex and every effort was being made to resolve the situation.

Life customers have been advised by the KPMG Advisory team to continue paying their premiums. If an alternative insurer is not found to take on the life policies, all premiums paid after July 29 will be repaid to clients.

The BAICO hotline for concerned clients is 294-2651. Queries can be directed by e-mail to infoba@kpmg.bm. Information will be updated at www.kpmg.bm/ba.